Russia must diversify and invest rather than consume and export commodities in order to grow and strengthen, according to Vladimir Putin at VTB Capital’s conference in Moscow on Wednesday.

Vladimir Putin said Russia needs to promote long-term investment, improve the business climate by introducing more incentives to encourage small- and medium-sized enterprises and diversify exports.

Russia needs to modernise, wean itself off its dependence on commodities, not rely on consumer demand for economic growth, improve labour productivity and encourage entrepreneurs, said Vladimir Putin, president of the Russian Federation, at the Russia Calling Forum organised by VTB Capital on Wednesday.

“Living off the rent from natural resources is unsustainable and would be a burden on future generations,” he warned. Instead, the country must transform its economic development through structural adjustments,...